Hotel Management Course - Analyse & Maximize restaurant profitability

Hospitality
Finance A-Z
Complete Understanding of financial
Reporting in hospitality Industry
F&B Revenue & Cost Management
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Channel and Facebook Page linked in description to support

F&B Division
• Key Areas we will discuss in this Workshop are
• F&B Operation Concepts
• Covers & Revenue Analysis
• Cover Analysis Report
• Market Segment Report for Banqueting &
Restaurants
• Menu Engineering
• Food & Beverage Cost
• Potential Cost Reports
• Cost Management tricks and ideas
• FnB labour cost Management

Things to Do
before start
Silent Phones / No Social Media..
We will give short breaks for that
Like and Share our Page
(eHotelManagementSchool)
Discussion only during discussion
time.
Pls note questions to ask during
QA Session

FnB Business Cycle
Before
Guest
Arrival
Restaurant Concept
Menu Design & Costing
Advertising & Marketing
Booking & Reservations
Guest At
Restaurant
Welcome / Starting appetizers
Guest Ordering
Communication to Kitchen
Preparation of food
Serving of Food
Upselling of Beverages and Desserts
Clearing & Billing
After Guest
Visit
Loyalty Programs
Guest Feedbacks and reviews
Billing for Banquets

Banqueting Operations
Social Functions,
Meetings &
Conventions
Bulk Guests
Planning &
Execution
Non Standard
settings, menu
High potential of
wastage and
Biggest
opportunity of
profit maximization

Steps and
Strategies
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and Facebook Page linked in description to support
Positioning of
Restaurant
and Concept
Statement
Identify
Customer
Segment &
profile
Competition
Analysis
Menu Design
& Costing
Standard
Service
Procedures
Monitor the
Performance

Positioning & Concept
Lower Income
Range, Middle
Income, High
Income,
Upscale
Casual Dining,
Fine Dining,
Family style
Cuisine
Specialty
Location
Characteristics
Copyright - Excel Finance Academy Follow our YouTube Channel and Facebook Page linked in description to support

Customer
Segmentation
& Profiling
How
• Businesses for
Meetings
• Families for Fun
• Social Functions
• Tourist Groups
Why
• Price Sensitivity
• Service & Facility
Requirements
Profile
• Age
• Income Group
• Habits, Mode of
booking

SWOT Analysis
SWOTAnalysis
While conducting aSWOTanalysis
 Analyze the internal & external
factors that affect hotel’s goalof
maximizing revenue
 Develop strategies that will
improve your hotel’s
competitive position
Favorable Unfavorable
Strengths
Attributes thatare
helpful
Eg.Meeting roomhas
recently been
refurbished
Opportunities
External condition
helpful
Eg.Anew corporate is
moving office closeto
your hotel
Weakness
Attributes that arenot
helpful
Eg.Reputation scores
are low and staff lack
in skill
Threats
External conditions can
damagegoals
Eg.Compoffering
lower rate butoffering
higher perceivedvalue
InternalExternal

Menu Design
Principals
Paradox of
Choice
Decoy Effect
Social Proof
Priming and
the “Pain” of
Paying
Use Boxes to
Emphasis and
Draw Attention
Choose Right
Colors and
Pictures

Monitor Performance

Cover Analysis
Analysis of Covers
by Meal Period
Covers by Source-
Inhouse / Outside
Analysis of Covers
by Booking Source
Corporates
Agents
Meetings
Weddings / Social
Functions
Nationality
Breakdown
(Possible via TMS)
Revenue Per Seat
/ Per Sq Mtr

Sample
Report for
Cover
Analysis
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description to support

More Example of Cover & Revenue Analysis

Latest Marketing
Tectics
?
Copyright - Excel Finance Academy Follow our YouTube Channel and Facebook Page
linked in description to support

F&B Cost & Contribution Margin
Menu Price = 100
Menu Cost = 20
Cost % = 20%
Contribution = 80
Contribution Margin = 80%
Standard Cost = (Recipe
cost)
Potential Cost = Standard
cost * items Sold
Actual Cost = Opening Stock
+ purchase – Closing Stock

Menu Engineering
Helps to Identify
Best Selling menus
items
Most profitable items
Popular items but less
profitable
Profitable items but
not popular
Not popular and not
profitable
Periodicity – Monthly,
Quarterly
Affected by
Seasonality,
Geographical
breakdown of guests

Suggested
Strategies for
Revenue and
Cost
Maximisation
What should you do with Most profitable and Most Popular items?
Keep the quality and use them as
signature dish for promotions.
Include them in combos to sell other
non popular items
Not Popular but most profitable
Upsell Incentives Promotions to boost sales
Popular but low margin items
Portion control
Recipe
engineering to
control cost
Combine other
low cost item as
package
Adjust Price
upwards
Less Popular & Less Profitable Items

Menu
Engineering
Group
Discussion/
Assignment
• Any other strategy or action you
have used apart from what is
discussed previously
• Analyze the sample report &
come up with some ways to
Maximize profitability. Make &
State your assumptions

Sample Way to Analyse Profitability

Cost Calculations
Opening Stock
Plus Purchases
Plus Transfer from
main Kitchens
Less Transfer to other
outlets
Less Complimentary
Less Spoilages
& Damages
Less Closing Stock

Potential Cost Reports
Supposed to be cost assuming no wastage, spillage or rebates
• Indicators of Wastage / Spoilages & Damages
• Post Function Rebates & Discounts
• Improper Transfer of cost from main Kitchens
• Not following standard reciepes
• Other Factors
Why is important?
Standard Deviation Allowed = +-5 %

How to Calculate
Potential Cost
Standard Recipe Cost
Quantity Sold for Menu Item
Standard Planned cost for buffet &
functions
Reduce Damages / Spoilage Reported
Compare with Actual cost

Cost
Management
Tricks
Analyze Food cost
for each outlet.
Potential Cost
Report
Check for Wastage,
Spoilage Report
from Buffet
Prices of imported
items
Portion Controls /
Check Food Thrown
away through
stewarding
Recipe Engineering

Labour Cost Analysis
What is labour cost ? Fixed, Variable, Semi Variable
Productivity Reports
• Covers Served per Service Staff
• Service Standard Ratios and controlling actual covers
Zero Base Manning
What Automation or Equipments can help to control manning.

Other Workshops
Overall Hotel
Financial
Statements
Revenue
Management –
Fundamentals &
Process
Maximize F&B
Profitability
(Revenue and Cost
Management)
Labour Cost
Management
How to make
budget and
forecast your
business
Set & Monitor
KPIs for Hotel
Overall
Performance
Master - Cost
Control Functions
Master - Revenue
Audit

Thank you so Much
• Questions please post to Q&A sessions
• Did I missed any topic?
• Please Review the course
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Hotel Management Course - Analyse & Maximize restaurant profitability

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